All Posts Tagged With: "Treasury Bonds"

Government Rescues Will Trigger a Bull Market in Gold

It looks like we’re going to be graced by a “joint response” to the financial crisis by the G7 leaders.

Paul Tustain says it was government action — slashing interest rates — that caused the crisis. Now they tell us slashing rates further and nationalizing banks is the way to ‘fix’ the economy.

This ‘fix’ will and lead to a protracted period of underperforming stocks and bonds… and create the perfect conditions for a bull market in gold.

Why You Need to Worry about the Planned 401(k) Reform

It is in exactly times like these that Washingtion likes to pass under-the-radar legislation. Dave Gonigam says some ideas floated at a Congressional hearing on 401(k) and pension plans should sound alarm bells among investors.

Why US Dollar and T-Bonds Are Biggest Losers in Bailout Plan

Any celebrations over this government bailout (if it gets passed) will be short lived, says Russell McDougal at Investor’s Daily Edge. The $700 billion plan will merely reinforce the fraudulent status quo in US money markets. And that means it will merely postpone the inevitable day of reckoning. Russell says this is a “disastrous long-term strategy” that will eventually wipe out the US dollar and Treasury bonds.

Stick to High-Quality Corporate Bonds for Record Yields

Tonight, the Senate will vote on a revised version of the bill Congress trashed on Monday.

Eric Roseman says the passing of the bill will not address the root of the banking crisis: asset price deflation. This could takes years to reverse; Japan is still suffering from the deflationary hangover of the real estate slump there in the late 1980s.

Eric says it’s difficult to see a bull market in US stocks in the near future. He recommends investing in assets that produce regular income… like high-quality corporate bonds.

McDonald’s Has Better Credit Than US Government

Fast-food chain McDonald’s (NYSE:MCD) is more credit worthy than the US government, according to Finnish newspaper Helsingin Sanomat. We’re not surprised one little bit. After almost eight years of the “CEO president” George Bush in the White House this is where we’re at. The market now sees a fast-food chain’s corporate loan to be a safer investment than the bonds of the world’s most powerful country.

Why US Treasury Bonds Are the Best-Ever Short Play

The administration’s proposed bailout plan is staggering in scale. Independent analysts expect the costs to comfortably exceed the $1 trillion mark.

“It’s inflate or die for Western capitalism,” says The Sovereign Society investment director, Eric Roseman. It may take a while but, according to Eric, Hank Paulson’s attempt to rescue the financial system will send inflation soaring and the US dollar tumbling.

This makes US Treasury bonds a great short play for long-term investors…

Sell the Dollar, Sell the Dollar, Sell the Dollar

Since whispers of a Lehman Bros collapse started to circulate almost two weeks ago the US dollar index has slumped 4.8%. And the $700 billion Paulson bailout plan has done little to shore up dollar strength.

There are “fears that the package may cost too much, drive up inflation, swell the already bloated U.S. deficit and hurt the ailing economy,” reports AP.

Eric Fry says his investment strategy is based on a simple formula: “Sell the dollar, sell the dollar and sell the dollar.” And as the buck gets whacked, so will American stocks and bonds. On the other hand, foreign assets and commodities should soar…

US Dollar and Treasury Bonds Will Not Escape This Correction

Ben Bernanke and Hank Paulson are planning the biggest bailout of financial markets in history. It could cost the taxpayer somewhere in the region of $1 trillion. But the market will triumph over the interventionists, says Bill Bonner.

The biggest credit bubble in history is due a correction, and there is little the Fed or Treasury can do to stop it. The more they try, the more money they have to print.

This makes the outlook for the dollar and US Treasury bonds ever more perilous… and the outlook for gold ever more attractive.

Why Fed Bailouts Are Good News for This Inverse Bond Fund

Despite the chaos on Wall Street, the Fed yesterday left its benchmark interest rate on hold at 2%.

Martin Hutchinson says the Fed has finally starting doing its job: putting price stability over Wall Street’s demands. Real interest rates are negative. This is feeding inflation. It also means Treasury bond yields - also currently below the rate of inflation - are too low and should begin to rise again.

Martin says investors can profit from this situation with the Rydex Juno Inverse Government Long Bond Strategy (MUTF:RYJUX).

US Plunge Protection Team ‘Large and In Charge’

With Wall Street in the gutter, shadowy government market manipulators are very much “running the show” now, according to Taipan Daily editor Justice Litle. And they will do anything to protect Wall Street’s interests. Foreign powers are in cahoots with these US market manipulators. They have to be - without them the whole house of cards would come tumbling down.

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